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By Edward KamonjohDirector of Impact Management, Calvert Research and Management

Washington - Calvert has long advocated for greater transparency in the asset management industry. The more investors know about exactly what companies they own — and what impact their holdings have on the planet and people — the easier it can be to make informed decisions about what to include in an individual portfolio.

Companies' positive and negative environmental, social and governance (ESG) impacts matter because we believe they are inextricably intertwined with their financial vitality, sustained long-term value creation wherewithal and prevailing social license to operate.

The Calvert Transparency Tool was introduced in 2020 to ease ESG impact comparisons for financial advisors. The Tool is powered by data from Morningstar and allows investment professionals to evaluate mutual funds and ETFs on a broad range of traditional portfolio characteristics and ESG KPIs, including a side-by-side view of how fund selections compare on a wide array of ESG, fundamental and diversification metrics.

On Earth Day, a new way to examine impact on the planet

On Earth Day, companies often make claims that they have the planet's best interests in mind, but those assertions are not always in alignment with their actions. We believe a primary benefit of the Tool is its ability to help investment professionals distinguish strategies that veritably embed ESG integration and engagement via prospectuses, and those that purport to be ESG products but may be so in name only. For investors interested in avoiding such "greenwashing," we believe tools such as this one can help distinguish corporate leaders and laggards.

Additionally, the Calvert Transparency Tool can benefit financial advisors and their clients by:

  • Facilitating informed and contextual Responsible Investing discussions.
  • Displaying degrees of ESG adoption and purpose using side-by-side comparisons that incorporate both traditional and ESG metrics.
  • Sparking conversations that center around more holistic ESG analysis, moving beyond scores to discuss ways in which engagement can encourage ESG improvements that may lead to better financial and impact performance.

Bottom line: The Tool is free for financial professionals to use. Log in here for access.